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Mortgage servicer Ocwen Financial Corp. ($41.60 0%) posted a higher profit and record-setting revenue for the third quarter as the firm expanded its balance sheet with the acquisition of mortgage servicing rights valued at $6.1 billion of unpaid principal balance.
Ocwen posted a profit of $51.4 million, or 37 cents a share. That's up from earnings of $20.2 million, or 19 cents a share, in the third quarter of 2011.
Revenue for the period shot up 90% from last year, reaching $232.7 million.
Ocwen's book of business expanded after it acquired mortgage-servicing rights from a large bank on a non-performing subservicing portfolio valued at $1.1 billion in unpaid principal balance.
Another $2.5 billion in MSRs UPB was booked in September.
The company also acquired $2.2 billion in UPB of Fannie Mae MSRs and another $316 million UPB of MSRs from both GSEs in July.
One of the more highlighted transactions recorded in the third-quarter was Ocwen's winning bid in partnership with Walter Investment Corp. ($37.48 0%) to acquire mortgage servicing and origination assets from former Ally Financial subsidiary Residential Capital out of bankruptcy. The firms acquired the MSRs and assets for a purchase price of $3 billion. Once approved by the bankruptcy court, Ocwen will end up with $126.6 billion of UPB in MSRs and $31 billion of UPB in subservicing rights.
Ocwen expanded its footprint further in the mortgage space this week, announcing the acquisition of Genworth Financial Equity Access for $22 million. The reverse mortgage originator was acquired from its parent firm, Genworth Financial Corp ($5.86 0.08%).
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